Nutrisystem Shares Rocket On Acquisition Agreement


Nutrisystem Inc., (NTRI: NASDAQ)

Shares of Nutrisystem Inc., soared after agreeing to be bought by Tivity Health Inc., in a $1.4 billion cash and stock deal. According to the terms of the agreement, Nutrisystem shareholders will get $38.75 per share in cash as well as 0.2141 shares of Tivity stock. When the deal is finalized, current Tivity stockholders will own around 87% of the combined company.

The acquisition values Nutrisystem at approximately $47 per share. The deal, which has been unanimously approved by the boards of both companies, is expected to close during the first quarter of calendar 2019.

Upon completion, Nutrisystem Chief Executive Dawn Zier will join Tivity’s board and become its president and chief operating officer. Tivity intends to finance the acquisition with existing cash at hand and a term loan from Credit Suisse. It also plans on maintaining Nutrisystem headquarters in Fort Washington, Pennsylvania.

Both Nutrisystem and Tivity Health made the joint announcement on Monday which had a significant impact on their stocks. Nutrisystem shares climbed approximately 28.61% while shares of Tivity Health lost $12.99.

Executive Comments

Tivity Health Chief Executive Officer Donato Tramuto said, “The acquisition of Nutrisystem is an exciting and transformational event for Tivity Health as we expand our portfolio of healthy lifestyle brands.”

 “Tivity Health and Nutrisystem share the same mission-driven culture and have highly talented, motivated colleagues. Tivity Health has the opportunity to accelerate its already impressive growth with the addition of Nutrisystem. Our combined platform has the potential to attract new users, increase enrollment, and enhance engagement among the loyal customers and members of both companies,” Tramuto added.

Nutrisystem Chief Executive and President Dawn Zier commented, “Today marks an important milestone in Nutrisystem’s 45-year history, as through this transaction, we will become part of a leading health and wellness company that will offer a broad range of nutrition, fitness and social engagement solutions to our customers.”

“This transaction will provide our shareholders with significant value and the opportunity to participate in the upside potential of the combined company through ownership of Tivity Health stock,” Mr. Zier added.

Nutrisystem Inc., Company Profile

Nutrisystem, Inc. engages in the provision of weight management products and services. It offers weight loss programs sold primarily online and over the telephone and multi-day kits and single items available at select retail locations.

It also provides pre-packaged food program, digital tools, and counseling. The company was founded in 1971 and is headquartered in Fort Washington, Pennsylvania. Nutrisystem competes with Medifast Inc., Spark Networks SE and XpresSpa Group Inc. – CNN Money

Tivity Health Inc., Company Profile

Tivity Health, Inc. provides fitness and health improvement programs in the United States and targets people aged 50 and older. It offers three programs; SilverSneakers senior fitness, Prime fitness and WholeHealth Living. Tivity Health, Inc. was founded in 1981 and is headquartered in Franklin, Tennessee. – Yahoo Finance